NEWSPAPER GUILD OF BOSTON, Plaintiff, Appellant, v. BOSTON HERALD-TRAVELER CORPORATION, Defendant, Appellee

United States Court of Appeals for the First Circuit1956-04-25No. No. 4983

233 F.2d 102

Summary · law.co

Holding. The judgment dismissing the case for lack of jurisdiction is vacated and remanded to the district court, which must determine whether the dispute over the employee's transfer comes within the scope of the arbitration clause and proceed under the United States Arbitration Act.

A labor union representing employees of a newspaper publisher sought to compel arbitration of a dispute over an employee's transfer to a different work shift, which the union characterized as a constructive discharge. The collective bargaining agreement between the parties contained an arbitration clause covering discharges, but the publisher refused to arbitrate, arguing that because the employee was transferred rather than terminated, there was no arbitrable dispute. The district court dismissed the case for lack of jurisdiction, relying on precedent that had questioned federal jurisdiction over labor arbitration disputes.

The appellate court reversed the dismissal, holding that federal courts have jurisdiction to compel arbitration under the Taft-Hartley Act and the United States Arbitration Act. The court recognized that while the arbitration clause was narrow in scope, the threshold question of whether a particular dispute falls within that clause must be addressed by the district court on remand, applying principles of contract interpretation rather than avoiding the arbitration process entirely.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

Whether federal courts have jurisdiction to compel arbitration under the Taft-Hartley Act
Whether a transfer can constitute a discharge triggering arbitration obligations
Scope of arbitration clauses in collective bargaining agreements

Procedural posture

The district court dismissed the union's complaint for lack of jurisdiction, and the union appealed to the First Circuit.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion · public domain

majority opinion

MAGRUDER, Chief Judge.

This case involves the same legal questions as Local 205, United Electrical Workers v. General Electric Co., 1 Cir., 233 F.2d 85. Plaintiff herein is an unincorporated labor organization representing employees of defendant publisher in an industry affecting commerce. In April, 1954, plaintiff and defendant executed a collective bargaining agreement. It did not contain conventional grievance or arbitration provisions, but in “Article V—Security” the parties agreed to meet upon the request of either one to discuss matters arising from application of the agreement or affecting the relations of employer and employees. More specifically, paragraph 3 of that Article called for a meeting at the request of the Union to discuss any discharge. Paragraph 4 then provided:

“In the event that the Publisher and the Guild are unable to agree upon the discharge, the matter shall upon the request of either party be submitted to arbitration for the purpose of deciding (1) whether or not the Publisher had just cause for the discharge, * * *.”

The arbitrator was authorized, if he found the discharge was without just cause, to order reinstatement with compensation for lost time. A few procedural matters followed.

In June, 1954, a rewrite man named Broudy, who had been working on the regular day shift for many years, was transferred by defendant to the so-called “lobster” shift, which begins at 1:00 A. M. The Union protested this transfer, which it characterized as a “constructive discharge,” on several grounds, but no agreement was reached with defendant. The Union then invoked the arbitration provision quoted above, but the publisher refused to arbitrate, asserting that Broudy’s employment had not been terminated and hence that there was no arbitrable issue under that paragraph. This suit by the Union under § 301 of the Taft-Hartley Act, 61 Stat., 156, 29 U.S.C.A. § 185, followed, with the plaintiff asking only for an order to compel arbitration. The complaint was dismissed by Chief Judge Sweeney for lack of jurisdiction on April 7, 1955, relying on the then recent opinion by Judge Aldrich in Local 205, United Electrical etc., Workers v. General Electric Co., D.C.D.Mass.1955, 129 F.Supp. 665.

This disposition must be reversed, in the light of our decision today in Local 205, United Elec., etc. v. General Electric Co., 1 Cir., 233 F.2d 85. This case will also be remanded to the district court for further proceedings under the United States Arbitration Act, 9 U.S.C. § 1 et seq. Here, too*, the contract’s arbitration provision is one within the scope of § 2 of that Act, and the parties should be permitted to amend their pleadings further to allege, respectively, compliance with the requisites of the Act and defenses afforded by it.

In this case the arbitration clause is a narrow one, but nevertheless there is a question, which is for the district court in the first instance to determine, as to whether the dispute over Broudy’s transfer comes within the scope of the clause. In the General Electric opinion we have suggested general principles, by way of guidance only. It is a matter of interpretation of the particular contract involved. Cf. Bakery & Confectionery Workers’ Intern. Union, etc., v. National Biscuit Co., 3 Cir., 1949, 177 F.2d 684; Local 379 of Intern. Union, etc. v. Jacobs Mfg. Co., D.C.D.Conn.1953, 120 F.Supp. 228; and cases cited in part V of our opinion in the General Electric case.

The judgment of the District Court is vacated, and the case is remanded to that court for further proceedings not inconsistent with this opinion.